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ASX 200 Opens lower as higher rates weigh on investors

EditorOliver Gray
Published 22/09/2023, 10:24 am
© Reuters
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Investing.com - The Australian Stock Exchange (ASX) took a steep nosedive, dropping 1.5% after the first 30 minutes of trade, echoing Wall Street's concerns about the potential persistence of high interest rates for the coming months.

All 11 sectors on the ASX saw a negative shift, with tech stocks, which are particularly sensitive to interest rate changes, taking the lead in losses with a decline of 2.2%.

Major mining companies, BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO), also felt the sting, each losing over 2%. The big banks were not immune to the downturn, with all retreating in the face of the market fall.

Despite the broad market decline, Costa Group Holdings Ltd (ASX:CGC), a fruit and vegetable processor, emerged as a standout performer, soaring by 6.6%. The company's impressive rally followed its acceptance of a takeover offer from US buyout firm Paine Schwartz Partners, at $3.20 cash per share.

News Corp (NASDAQ:NWS) also bucked the downward trend, with its shares rallying 1.6% on the news of Rupert Murdoch stepping down from his position as chairman.

However, not all companies managed to escape the downward pull. Australian Clinical Labs Ltd (ASX:ACL), a pathology group, saw its shares drop by 1.4% after the competition watchdog requested additional information regarding its proposed merger with Healius. Shares of Healius also suffered a 2.5% decline.

Gas pipeline owner, APA Group (ASX:APA), also experienced a dip, with its shares falling by 1% following the release of a report on the company's climate transition plan.

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